An Act concerning the Kansas water pollution control
revolving fund; amending

K.S.A. 2000 Supp. 65-3322 and repealing the existing
section.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2000 Supp.
65-3322 is hereby amended to read as
follows: 65-3322. (a) There is hereby established in the state
treasury a
fund to be maintained in perpetuity and to be known as the Kansas
water
pollution control revolving fund. The fund shall consist of:

(1) Amounts awarded or otherwise made
available to this state under
the federal act for the purposes of the fund;

(2) amounts appropriated or otherwise
made available by the legis-
lature for the purposes of the fund;

(3) the proceeds, if any, derived from
the sale of bonds issued by the
Kansas development finance authority for the purposes of the fund
to the
extent provided in any agreement entered into by the secretary and
the
authority;

(4) amounts of repayments made by
municipalities of loans received
under K.S.A. 65-3321 through 65-3329, and amendments thereto,
to-
gether with payments of interest thereon, in accordance with
agreements
entered into by such municipalities and the secretary;

(5) amounts earned on moneys in the fund;
and

(6) amounts contributed or otherwise made
available by any public
or private entity for use in effectuating the purposes of the
fund.

(b) Subject to the conditions and in
accordance with requirements of
the federal act and the provisions of K.S.A. 65-3321 through
65-3329, and
amendments thereto, the fund may be used only:

(1) To make loans to municipalities for
payment of all or a part of
project costs;

(2) to carry out planning for wastewater
treatments works;

(3) for implementation of nonpoint source
pollution control pro-
grams;

(4) as a source of revenue or security
for the payment of principal
and interest on bonds issued by the Kansas development finance
authority
if, and to the extent that, the proceeds of the sale of such bonds
are
deposited in the fund;

(5) to earn interest on moneys in the
fund;

(6) to make grants to qualifying
projects as authorized by the federalappropriation act of 1996 (P.L. 104-134), in accordance with the
ruralcommunities hardship grants program implementation guidelines
(Fed-eral Register, March 20, 1997);

(7) to make grants to qualifying
projects as authorized by the con-solidated appropriations act of 2001 (P.L. 106-554), in
accordance withthe wet weather water quality act of 2000; and

(6)(8) for the
reasonable costs, in amounts not to exceed 4% of all
amounts awarded to the state for the fund under title VI of the
federal
act, of administering the fund and conducting activities under
K.S.A. 65-
3321 through 65-3329, and amendments thereto, and for reasonable
costs
after amounts cease to be awarded by the federal government under
title
VI of the federal act, as determined by the secretary, of
administering
the fund and conducting activities under K.S.A. 65-3321 through
65-3329,
and amendments thereto. Such costs shall be identified annually in
de-
velopment of the intended use plan as described in K.S.A. 65-3325,
and
amendments thereto.

(c) On or before the 10th of each month,
the director of accounts
and reports shall transfer from the state general fund to the
Kansas water
pollution control revolving fund interest earnings based on:

(1) The average daily balance of moneys
in the Kansas water pollution
control revolving fund for the preceding month; and

(2) the net earnings rate of the pooled
money investment portfolio
for the preceding month.

(d) All payments and disbursements from
the fund shall be made
upon warrants of the director of accounts and reports issued
pursuant to
vouchers approved by the secretary or by a person or persons
designated
by the secretary. All payments and disbursements from the fund,
and
beginning and ending balances thereof, shall be subject each year
to post
audit in accordance with article 11 of chapter 46 of the Kansas
Statutes
Annotated.

Sec. 2. K.S.A. 2000 Supp. 65-3322 is hereby
repealed.
Sec. 3. This act shall take effect and be in force
from and after its
publication in the statute book.